The ELS Slide Format - ABA.com · U4; U5. U6; Initiative 1. Initiative 2; Initiative 3. Initiative...

Strategic Agility

Kathy Pearson, PhDkpearson@wharton.upenn.edu

Enterprise Learning Solutionskpearson@ELSLearning.com

Connect on LinkedIn: Kathy Pearson, Executive Development and Design

Why is effective decision making in organizations

so difficult today?

Globalization

Too much informationVolatility,

Uncertainty,Complexity,Ambiguity

VUCA!!

So much change –And so quickly!

Competition

Regulation

FEAR

OUTCOMESSKILL UNCERTAINTY

Improve decision making and

implementation capabilities

Improve the ability to manage uncertainties

Judgment

Analytics

Critical Thinking

Long TermBusiness Objectives

Short TermBusiness Objectives

Value-Driven Results

Organizational Processes

Enterprise Mindset

Cultural Enablers

• Dashboards• Clear Metrics for Success

• Managing uncertainty• Higher tolerance for failure

• Adaptability and Optionality• Dynamic Scanning

• Emphasis on Analytics• Continuous Improvement

• Clarity of Enterprise “Core”• Alignment of Incentives

• Accountability• Bias Towards Action

• Aligned Executive Team• Shared Information

• Inquisitive Mindset• Emphasis on Learning

TEST AND LEARN

PRODUCTIVE PARANOIA!

Gathering the

RelevantInformation

Evaluatingthe

Alternatives

Preparingfor

Execution

Making the Decision

Executingon the

Decision

DevelopingAlternativeSolutions

Clarifyingthe Issue

Decision RightsDecision rights

explicitly determined early

Who will make the final

decision?

When will the decision be

made?

I STILL haveuncertainties!

Identify the key uncertainties:◦ Plan for the key trends◦ Manage the key uncertainties

Track the key uncertainties:◦ “Trendspotting”◦ “Sense-making”

Take action around the key uncertainties:◦ Conduct rapid experiments◦ Make small bets◦ Build adaptability and flexibility

A trend is a future force in which the outcome is very predictable - a known known or a

“predictable”

Unknown Unknown

Black Swan

Known UnknownManage with Adaptability

An uncertainty is a future force in which the outcome is unknown

Key Trends Key Uncertainties

Various markets or countries Adjacent industries Headlines in leading business and / or tech

journals Employees that interact closely with the external

environment Formal process embedded in the organization

VIGILANCE

Initiative U1 U2 U3 U4 U5 U6Initiative 1

Initiative 2

Initiative 3

Initiative 4

Initiative 5

Initiative 6

Vulnerable to the uncertainty= Invulnerable to

the uncertainty=

Initiative OnlineLearning

SkillsNeeded

in 10 years

U3 U4

Redesign MBA CurriculumInitiative 2

Initiative 3

Vulnerable to the uncertainty= Invulnerable to

the uncertainty=

Initiative OnlineLearning

SkillsNeeded

in 10 years

U3 U4

Redesign MBA CurriculumInitiative 2

Initiative 3

Vulnerable to the uncertainty= Invulnerable to

the uncertainty=

Initiative OnlineLearning

SkillsNeeded

in 10 years

U3 U4

Redesign MBA CurriculumInitiative 2

Initiative 3

Vulnerable to the uncertainty= Invulnerable to

the uncertainty=

Initiative U1 U2 U3 U4 U5 U6Initiative 1

Initiative 2

Initiative 3

Initiative 4

Initiative 5

Initiative 6

Initiative U1 U2 U3 U4 U5 U6Initiative 1

Initiative 2

Initiative 3

Initiative 4

Initiative 5

Initiative 6

Does the Person Care Personally?

Is the Person Willing to Challenge Directly and

Speak Candidly?

Yes

YesNo

No

Ruinous Empathy

Manipulative Insincerity

Radical Candor

Obnoxious Aggression

From Kim Scott

Fear of Repercussion?